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What would be your total real return on the investment

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Question - You bought one of Elkins Manufacturing Co.'s 7.8 percent coupon bonds one year ago for $1,061. These bonds make annual payments, mature 12 years from now, and have a par value of $1,000. Suppose you decide to sell your bonds today, when the required return on the bonds is 4.5 percent. If the inflation rate was 4.4 percent over the past year, what would be your total real return on the investment?

Reference no: EM133123705

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